"While the environment in both the U.S. and Canada continues to be challenging, and results aren’t yet where they need to be, we are making progress in our efforts to drive U.S. traffic and sales, improve our Canadian operations and advance Target’s digital transformation," said interim CEO John Mulligan in a statement.

As part of that turnaround strategy, Target last week appointed former PepsiCo executive Brian Cornell as its new CEO. He takes over next week.

Target says it now expects second-quarter adjusted earnings of 78 cents US per share, down from its previous guidance of 85 cents.

The retailer said its second-quarter results will include higher data breach-related expenses of $148 million US, partially offset by $38 million in insurance.